- OnEMI Technology Solutions plans to raise Rs 832 crore via preferential equity shares.
- Shareholder and regulatory approvals are required for the proposed equity issuance.
- Investors include Axis Mutual Fund, HDFC Mutual Fund, and Massachusetts Institute of Technology.
Digital lending platform Kissht's parent OnEMI Technology Solutions Limited announced that its Board has approved a proposal to raise around Rs 832 crore through the issuance of equity shares on a preferential basis, subject to the approval of the shareholders and requisite regulatory and statutory approvals.
The proposed issuance will be conducted in accordance with the applicable provisions of the Companies Act, 2013 and SEBI provisions, the firm said in a release on Thursday, September 17.
Marquee investors, including Axis Mutual Fund, HDFC Mutual Fund, Massachusetts Institute of Technology, White Oak, 360 One, Groww Mutual Fund, Bandhan Mutual Fund, have participated in the proposed preferential issue.
Through this fund raise, the company aims to boost its capital position and support its next phase of growth. The capital will also provide Kissht with greater financial flexibility to scale its lending business, strengthen its technology and digital capabilities, expand its product offerings, and deepen its reach across its target customer segments.
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Additionally, Kissht is targeting multiple credit rating upgrades over the next two years, supported by strong capitalisation and continued high-quality credit growth.
"These upgrades can create a powerful multiplier effect including lowering the cost of borrowing, expanding access to a broader and more diversified pool of capital, and increasing funding capacity. The resulting reduction in funding costs should strengthen margins and profitability, while the larger funding base will allow Kissht to scale lending without compromising its credit discipline," the company said.
It further added, "by strengthening its capital adequacy ahead of this rating exercise, the company can position itself as a more resilient, well-capitalised platform capable of sustaining growth through varying credit cycles."
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